Bitcoin Jumps Past $112K as Crypto Market Nears $4 Trillion

Bitcoin climbed back above $112,000 on Monday morning, reversing most of last week’s slide as heavy weekend buying fueled a sharp rebound. The move lifted the overall crypto market close to a $4 trillion valuation and triggered roughly $354 million in liquidations across leveraged positions.

Analysts point to a combination of a softer U.S. dollar, steadier interest-rate expectations, and reduced leverage after recent shakeouts as key factors supporting the rally. Market watchers also note that the previous week’s pullback stemmed largely from quarter-end portfolio rebalancing rather than a fundamental shift in sentiment.

Futures and options activity reflected the reset: open interest on major Bitcoin futures exchanges fell by nearly $2.8 billion during the week of September 18–25, while options volumes slipped by about $1.5 billion in the following days. U.S. spot Bitcoin ETFs saw temporary outflows during the same period, a pattern traders often view as routine quarter-end positioning rather than a sign of weakness.

Despite last week’s turbulence, perpetual futures traders have been adding exposure, with open interest inching higher alongside positive funding rates—a signal of rising confidence. Prediction markets now give Bitcoin a slight edge to finish September above $105,000, though opinions remain split on a push toward $125,000.

Investors are watching Friday’s U.S. Nonfarm Payrolls report, which could be delayed by a potential government shutdown. Still, many remain upbeat heading into Bitcoin’s historically strong fourth quarter, where median returns have hovered around 52%, and with the next halving event drawing closer, sentiment across the crypto space appears to be turning bullish once again.